Tue, 16 May 2023 | ADMINISTRATION
The business and assets of Chester-Le-Street-based packing firm iTEC Packaging (Chester-Le-Street) Ltd have been acquired out of administration by Shalam Packaging Group. The company fell into administration last month following a period of difficult trading conditions.
Martyn Rickels, Simon Farr and Allan Kelly of FRP Advisory were appointed as joint administrators and have now secured a sale which will see the firm’s 117 staff and all of its assets transferred on a going-concern basis.
Following the acquisition, the company will trade as Shalam Thermoforming (UK) Ltd. The Shalam group works in plastic packaging manufacturing, operating across a number of sites in four different countries.
Man'e Shalam of Shalam Packaging said that the acquisition would enable the group to manufacture its thermoforming solutions in the UK, meaning it could provide “a wide portfolio of technologies backed up by the products from the wider group and material from our in-house recycling facility."
Joint administrator Martyn Rickels added: "The sale of iTEC Packaging to Shalam Packaging in less than a month is a brilliant outcome for all involved. It not only helps with continued production for the customer base, but it also sees 117 jobs saved.”
In its accounts for the year ending December 31 2021, iTEC Packaging (Chester-Le-Street) Limited reported revenue of £23.3 million and a pre-tax loss of £7.2 million. Its net liabilities amounted to £16.3 million. The firm’s loss was attributed to the continued impact of COVID-19, as well as the costs associated with closing down iTEC’s operations at Stanley and Livingstone, which were transferred to Chester-Le-Street.
Read about M&A trends in the manufacturing sector.
Established food manufacturing business with doubled production capacity and a strong second tier management team, servicing 12 active clients with a growing forward order book.
This well-regarded and relocatable Manufacturing business has now come to the open market. Since its establishment in 2017, the business has acquired a great reputation amongst its customers, known for its quality service and friendly staff. Both its...
The business designs and builds specific to customer requirements for end users predominantly in oil & gas, petrochemical, chemical and pharmaceutical industries. They also provides assistance in areas such as on-site commissioning, systems complianc...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.